Estonia´s Rural Development Plan

Size: 45,227 km² (of which 43,200 km² is land area), no mountain
areas.

Agricultural land of 1.2 million hectares (arable land and natural
grassland) covers around 30% of total Estonian surface. Forest land covers
around 50% of the surface (40% of forest land is private).

1,36 million inhabitants; 30.6% live in rural areas, 69.4 % is urban
population.

Unemployment rate is less than 7%.

In 2005 there were approximately 27,700 agricultural holdings.

75% of holdings are very small. Only 7000 enterprises receive most of their
income from agricultural production and are called agricultural producers .

50% of the total land area (and of UAA) is classified as less-favoured area
(10% are specific less-favoured areas located on islands, coastlines, eastern
border of Estonia).

The main components of food industry are dairy, beverages and meat. Despite
rapid development of organic farming the organic processing is not developed and
most of organic products are sold as conventional products.

Chosen strategy corresponding to the profile

The overall objectives were chosen in accordance with the Community Strategic
Guidelines (CSG) and the National Strategy Plan:

Improving the competitiveness of the agriculture to such an extent that
after the end of the programming period the farmers will manage in the
conditions of reduced market support and direct payment;

Raising the long-term competitiveness of forestry to the level of ensuring
the sustainable management of private forests;

Ensuring the stable status of the environment and guaranteeing agricultural
land use in the regions where it is important for shaping traditional landscapes
and for the preservation of high nature value areas;

Improvement of quality of life in rural areas and diversification of the
rural economy;

Promoting local initiative, including formation of Leader-groups.

Overall budget and share of EU funding

Axis

Total (in €)

EAFRD* contribution rate (%)

EAFRD Amount (in €)

Axis 1

347 610 068

75

260 707 551

Axis 2

334 460 344

80

267 568 275

Axis 3

118 919 233

75

89 189 425

LEADER

85 759 063

80

68 607 250

Technical assistance

38 115 139

75

28 586 354

Total

924 863 846

77,27

714 658 855

* EAFRD= European Agricultural Fund for Rural Development

Overall aim of RD programme in country

To support the regionally balanced development of rural areas through the EU
Common Agricultural Policy measures